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General Accounting

Fiscal Year 2007-2008

Year-End Closing Procedures

The schedule for the fiscal year 2007-08 year end close is as follows:

The June I close for financial activity for fiscal year 2007-2008 will be extended to July 11, 2008.  Journal vouchers must be approved by 5:00 pm on July 11, 2008 to be included in the final journal load that will occur that evening.   Month end processes are scheduled to be completed by Monday, July 14^th.   

The June II close (Period 991) – Final Departmental Close - will occur the week of  July 14, 2008.  Journal vouchers must be approved by 5:00 pm on July 18, 2008 to be included in the final journal load that will occur that evening. Month end processes are scheduled to be completed by Monday, July 21^st.    

The June III close (Period 992) – Treasurer’s and Budget Office Only - will occur the weeks of July 21^st-July 31^st.  Fiscal year end processes are scheduled to be completed by Thursday, July 31^st.

Our office will send an e-mail to the Campus Community when the month/period or fiscal year end processing has been completed and financial data may be considered final.

Under guidelines accepted by the Financial Accounting Standards Board (FASB) for College and University reporting, expenditures are to be reported in the fiscal period when materials are received or services have been performed. The accounting process used to accomplish this task is called "year-end accruals". An accrual is an entry which records an expense that has been incurred by the fiscal year end, but the disbursement of cash has not occurred. In compliance with these guidelines, year-end accruals (expenditures only) are limited to (salary and non-salary) charges for services performed and for goods physically received, prior to the close of the fiscal year.

Accordingly, the following year-end accrual policies and year-end procedures will apply:

1. Invoices for goods received or services rendered during the 2007-2008 fiscal year should be properly approved by a Purpose Administrator and received by Procurement Services by 5:00 pm Friday, June 20^th to be processed against 2007-2008 funds.

2. Goods ordered with a purchase order from outside vendors and received directly by a department (for which an invoice has not been processed by Procurement Services) will be accrued to 2007-2008 funds if their value is at least $5,000. It is the responsibility of the Budget Administrator to report the receipt of goods to Fran Naughton, at naughton@udel.edu or extension 1461, of Procurement Services by 5:00 pm June 27^th in order to be accrued against 2007-2008 funds. The report to Mr. Naughton must be the bill of lading or other documentary proof of receipt.

3. Procurement Card procedures and processing deadlines are as follows:

June 24 is the last day for a vendor to post a charge to a Procurement Card and the department to expect it to be counted towards the current fiscal year.

June 30, Noon will be the last download of Procard Transactions for allocation.

July 9 by 5:00 PM is the last day departments may allocate charges in the Online Allocation System. After 5:00 PM, unallocated charges will be posted to the default accounts and will have to be corrected using a FIN Journal Voucher.

Subsequent changes to previously allocated charges will need to be made by processing a Journal Voucher during the June II close.

4. Cash Advances must be closed out by Friday, June 20^th to be charged to 2007-2008 fiscal year funds. There will be no accrual of unsettled overdue Cash Advances.

5. All Business Expense Report (BER) and Cash Advance closeouts must be received in Procurement Services by Friday, June 20^th to be charged to 2007-2008 fiscal year funds. For BER forms to be processed within this timeframe both the electronic form and supporting documentation must be received by Procurement Services by 5 pm on June 20^th.

6. For those basic budget Purposes, other than block Purposes (Library and Colleges) - if goods were ordered in sufficient time (normally prior to May 1st) to reasonably expect delivery prior to the end of the fiscal year and the purchase constitutes a significant percentage (10%) of the department's support funds budget or the amount involved is $5,000 OR MORE (per item), it may be possible to have these funds carried over to the next fiscal year, provided there are sufficient funds available in the Vice President's support funds budget. Requests for such carryovers should be addressed to the Budget office, via your Vice President, and must include a copy of the purchase order involved. Please verify that the items in question have not been received. Funds will not be carried over for outstanding internal services requests nor will they be carried over to cover cash advances in connection with travel to be taken after June 30, 2008.

7. The Cashiers' office deadline for depositing of all cash and checks, as well as cash transmittals for pre-deposits (bank validated deposit slips), will be Thursday, June 26^rh at noon.  To avoid overloading the Cashiers' office, please submit all cash, checks and pre-deposit cash transmittals as early as possible within the month of June. Also, please do not hold pre-deposit cash transmittals in your department; submit them to the Cashiers' office on a daily basis.

8. Services performed by June 30, 2008 by Internal Service Departments should be charged to the benefiting department during the June I close.  Flat File Uploads should be forwarded to General Accounting by Wednesday, July 2^nd at 5:00PM to assure they will be processed during the June I close.  Internal charges are not accrued.

9. The Budget Office will prepare the Academic Employee Salary Accrual using the June 15th pay amounts and funding sources. This accrual will be processed during the June I close and reversed in July.  There will be no accrual of bi-weekly payroll hours.

10.  Journal Vouchers prepared during the year end close process should be completed as follows:  

 Journal Vouchers prepared during the June I close should be prepared by inserting a date of June 30, 2008 on the web journal form.  The June 30, 2008 date will assure the journal is processed during the June I close.

Journal Vouchers prepared during the June II close should be prepared as follows:

11.  June II close journals which represent accrual entries and will be reversed in July should contain the following in the explanation and justification area of the journal:

12.  Journals for the 2008-2009 fiscal year prepared in July (Period1) during the 2007-2008 fiscal year close periods should be prepared by using the Journal Datefield and dating the journal as appropriate, i.e. July 15, 2008.

13. Journal Vouchers prepared by Treasurer's Office and Budget Office Personnel Only during the June III 992 close should be prepared by using the Adjustment Period field drop down box - Closing period 992. This will ensure the journal receives a date of June 30, 2008 and is posted as an adjustment to June 30, 2008 in Period 992.

14.  Financial data considerations during the year end close process:

15.  We will resume our regular Monthly Close Schedule for July 2008.      
    

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University of Delaware

Please direct questions to : General Accounting

URL of this document :http://www.udel.edu/genacct/
Last Updated Wednesday, July 2, 2008
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